More households are ditching gas and getting rewarded for it
If your ducted gas heater is on its last legs, or you’re planning to move your home toward an all-electric future, there’s a generous rebate available to help make the switch.
But here’s the catch: if you choose a system based solely on the rebate, you might end up with something that doesn’t suit your home, doesn’t keep you comfortable, and doesn’t last. That can mean more money spent down the track—and more hassle than it’s worth.
Let’s walk through how the VEEC rebate works for heating and cooling upgrades, what systems qualify, and what to watch out for so you don’t miss out.
What is the rebate?
This rebate is offered through the Victorian Energy Upgrades (VEU) Program in the form of VEECs (Victorian Energy Efficiency Certificates).
- Available when you remove gas ducted heating and replace it with an electric alternative
- Value depends on your postcode, the size and type of unit, and what’s being decommissioned
- Most installs are eligible for around $300–$5000 in value
- Applied as an upfront discount through an accredited provider
The goal of the program is to reduce reliance on fossil fuels by encouraging high-efficiency electric systems.
Which systems qualify?
To be eligible, your new system must meet certain efficiency and design standards, including:
- A ducted reverse cycle system
- Or multiple high-efficiency split systems replacing whole-home gas
- Installed by a participating provider
- Includes the decommissioning and removal of the gas heating system
This is important: you can’t keep your old ducted gas system in place for backup. To get the rebate, it has to be fully removed and appropriately recycled..
Why it’s not always straightforward
In theory, the rebate is simple. But in practice, here’s where things can get complicated:
- Each rebate is calculated differently for the decommissioned product and the size of its replacement. There is no simple answer to what you’ll get; it depends on the exact products.
- If you downgrade to a smaller system, the rebate is often less.
- From smaller units, the rebate cost can be less than the plumbing cost of disconnection.
That’s why we always say: don’t base your decision on the rebate alone. Focus on what system will work for your home now and into the future—and let the rebate be the bonus on top.
A real example
A family in Gisborne recently replaced their aging gas ducted heater with a new ducted electric refrigerant system. The installation included:
- Removal and safe decommissioning of the old gas heater
- A new ducted system designed to cover the whole home
- Access to a VEEC rebate of just over $4,000
Their new system is:
- Quieter & Zoned so they can choose how the use it
- More efficient in summer and winter
- Ready to be powered by solar during the day
- And no longer tied to the rising cost of gas
They’re now planning to replace their gas hot water system next, and will be eligible for a whole new set of rebates when they do.
Heat pump heating and cooling + solar = the smart combo
Like heat pump hot water, an electric heating and cooling system can be powered by your home’s solar. That means free heating and cooling during daylight hours—and if paired with a battery, it can carry you comfortably into the evening too.
When it’s all designed as part of a bigger plan, your home runs better, costs less, and feels more comfortable year-round.
Can you stack this with other rebates?
Yes! You can combine the heating and cooling rebate with:
- The Solar Victoria rebate
- STCs or VEECs for other upgrades (like hot water or battery)
- And federal incentives through the Cheaper Home Battery Program
Just keep in mind: most of these rebates are one per property, and they all decrease each year, so the sooner you plan, the better the outcome.
Still got questions?
Whether you’re trying to get off gas entirely or simply upgrade your heating to something more efficient, we can help you weigh up your options—rebates included.
Book your free rebate consult here or call us on (03) 5426 5522.
No pressure. No technical jargon. Just honest advice from a local team who’s done it in homes just like yours, right here in the Macedon Ranges.